Chetan Ahya, the Chief Asia Economist at Morgan Stanley is bullish on Asian economies in 2023 and he believes that Asia will outperform US growth. Speaking from the sidelines of Morgan Stanley’s 21st Asia Investors Summit, Ahya said, “The key premise for our constructive view on growth outlook is that we think inflation will decline rapidly towards central bank’s comfort zone.”
“That means that the central banks will not have to take rates into restrictive territory, supporting domestic demand and that domestic demand strength we think will allow Asia to outperform US growth.”
He expects Asia’s GDP to grow from 3.5 percent right now to 4.6 percent in the second half of next year. “At the same time, we are expecting the US growth to remain weak at around 0.5 percent. So that means that the differential between Asia and US growth will continue to widen and that will make Asia look very attractive from a growth perspective”, he said.
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On India’s GDP growth he said, “We do have this global slowdown that is taking place right now and exports being weak, and that is the key reason why we have GDP growth at 6.2 percent for next year. But then in FY 2025, we are still expecting a pretty reasonable growth of 6.50 percent.
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